ABNB - Hotel REITs: Time To Get Away

• Fueled by vaccines and fiscal firepower, the United States has emerged as the clear global leader of the post-pandemic economic recovery, powering a robust recovery in domestic leisure travel.
• TSA data showed that domestic travel has recovered to 75% of pre-pandemic levels after bottoming at under 5%. STR reported that hotel occupancy has recovered to 90% of pre-pandemic levels.
• Following a brisk post-vaccine share price recovery, hotel REITs and the broader hospitality industry have stalled over the last quarter amid renewed concerns over COVID variants abroad.
• While the recovery in domestic leisure travel is nearly complete, international tourism will likely remain depressed and recent outbreaks suggest risks are skewed to the downside for the hospitality industry.
• Hotel REITs are not out-of-the-woods, but we've become more bullish on the long-term outlook for domestic business travel. We see pockets of value in leisure-oriented hotel REITs focusing on Sunbelt markets.

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